AfDB and IsDB Hit Two-Thirds of $4bn Co-Financing Target for Africa

The African Development Bank Group (AfDB) and the Islamic Development Bank Group (IsDB) have approved $2.65 billion in joint financing for projects across 27 African countries, reaching 66 per cent of their $4 billion co-financing target ahead of schedule.

AfDB President Dr Sidi Ould Tah and IsDB Group Chairman Dr Muhammad Al Jasser reviewed progress under the 2024–2029 Cooperation Framework during talks at IsDB headquarters in Jeddah, with both leaders expressing confidence that the institutions could pursue more ambitious co-financing targets. “This proves that we can do much better,” Ould Tah said, noting that the $4 billion target had already been achieved at 66 per cent in less than two years.

The 2024–2029 Cooperation Framework provides a combined $4 billion co-financing envelope for sovereign and non-sovereign operations, with the two institutions working to improve cooperation on project preparation, implementation and resource mobilisation to deliver measurable development benefits. The leaders discussed ways to adopt integrated approaches to project development and delivery for greater impact in energy, transport, water, health, agriculture and food security.

Al Jasser emphasised the importance of deepening cooperation across the IsDB Group, drawing on its entities’ complementary capabilities in trade finance, private sector development, insurance and guarantees, with both sides exploring Islamic finance and other capital mobilisation opportunities. The meeting also addressed closer cooperation between the IsDB Concessional Fund (ICF) and the African Development Fund (ADF), including co-financing eligible operations and exchanging experience in concessional financing.

The visit built on the January 2026 Joint Declaration between the Arab Coordination Group (ACG), of which the IsDB is a member, and the AfDB, which called for stronger Arab-African financing cooperation. The framework seeks to mobilise African savings to help close the continent’s estimated annual financing gap of $400 billion, with Ould Tah calling for stronger coordination on the ground and greater participation by other development partners.

Ould Tah also proposed regular progress meetings and reduced duplication in project evaluation, procurement and due-diligence processes, with the leaders commending the progress achieved under the IsDB–AfDB Memorandum of Understanding and exploring opportunities to broaden its scope and raise its co-financing target. The challenge now is to convert the remaining $1.35 billion of the target into approved projects, while building the pipeline for joint operations beyond the current Cooperation Framework.

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